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Tier REIT (Tier REIT) ROE % : -7.27% (As of Mar. 2019)


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What is Tier REIT ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Tier REIT's annualized net income for the quarter that ended in Mar. 2019 was $-56.5 Mil. Tier REIT's average Total Stockholders Equity over the quarter that ended in Mar. 2019 was $776.6 Mil. Therefore, Tier REIT's annualized ROE % for the quarter that ended in Mar. 2019 was -7.27%.

The historical rank and industry rank for Tier REIT's ROE % or its related term are showing as below:

TIER's ROE % is not ranked *
in the REITs industry.
Industry Median: 4.195
* Ranked among companies with meaningful ROE % only.

Tier REIT ROE % Historical Data

The historical data trend for Tier REIT's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Tier REIT ROE % Chart

Tier REIT Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
ROE %
Get a 7-Day Free Trial -2.20 -4.67 -4.55 13.01 -0.69

Tier REIT Quarterly Data
Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.93 -4.81 11.96 -13.91 -7.27

Competitive Comparison of Tier REIT's ROE %

For the REIT - Office subindustry, Tier REIT's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Tier REIT's ROE % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Tier REIT's ROE % distribution charts can be found below:

* The bar in red indicates where Tier REIT's ROE % falls into.



Tier REIT ROE % Calculation

Tier REIT's annualized ROE % for the fiscal year that ended in Dec. 2018 is calculated as

ROE %=Net Income (A: Dec. 2018 )/( (Total Stockholders Equity (A: Dec. 2017 )+Total Stockholders Equity (A: Dec. 2018 ))/ count )
=-5.021/( (676.803+774.551)/ 2 )
=-5.021/725.677
=-0.69 %

Tier REIT's annualized ROE % for the quarter that ended in Mar. 2019 is calculated as

ROE %=Net Income (Q: Mar. 2019 )/( (Total Stockholders Equity (Q: Dec. 2018 )+Total Stockholders Equity (Q: Mar. 2019 ))/ count )
=-56.496/( (774.551+778.619)/ 2 )
=-56.496/776.585
=-7.27 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2019) net income data. ROE % is displayed in the 30-year financial page.


Tier REIT  (NYSE:TIER) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2019 )
=Net Income/Total Stockholders Equity
=-56.496/776.585
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-56.496 / 200.368)*(200.368 / 1580.818)*(1580.818 / 776.585)
=Net Margin %*Asset Turnover*Equity Multiplier
=-28.2 %*0.1267*2.0356
=ROA %*Equity Multiplier
=-3.57 %*2.0356
=-7.27 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2019 )
=Net Income/Total Stockholders Equity
=-56.496/776.585
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-56.496 / -54.148) * (-54.148 / -3.88) * (-3.88 / 200.368) * (200.368 / 1580.818) * (1580.818 / 776.585)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0434 * 13.9557 * -1.94 % * 0.1267 * 2.0356
=-7.27 %

Note: The net income data used here is four times the quarterly (Mar. 2019) net income data. The Revenue data used here is four times the quarterly (Mar. 2019) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Tier REIT ROE % Related Terms

Thank you for viewing the detailed overview of Tier REIT's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Tier REIT (Tier REIT) Business Description

Traded in Other Exchanges
N/A
Address
5950 Sherry Lane, Suite 700, Dallas, TX, USA, 75225
Tier REIT Inc is a Dallas-based real estate investment trust. Its current business consists of owning, acquiring, developing, operating, investing in, and disposing of real estate assets. The company owns interests in nearly 29 operating office properties, one non-operating property, and one development property located in thirteen markets throughout the United States. Its property portfolio comprises 500 East Pratt, 5950 Sherry Lane, Bank of America Plaza, Centreport Office Center, Eldridge Place, among others.
Executives
Scott W Fordham director, officer: Chief Executive Officer 5950 SHERRY LANE, SUITE 700, DALLAS TX 75225
Christie B. Kelly director 600 E. 96TH ST., #100, INDIANAPOLIS IN 46240
Griffin R Kent Jr director 5950 SHERRY LANE, SUITE 700, DALLAS TX 75225
Richard I Gilchrist director 5950 SHERRY LANE, SUITE 700, DALLAS TX 75225
Thomas M Herzog director 1920 MAIN STREET, SUITE 1200, IRVINE CA 92614
M Jason Mattox director 1323 NORTH STEMMONS FREEWAY SUITE 200, DALLAS TX 75207
Thomas P Simon officer: Senior Vice President/Finance 1745 SHEA CENTER DRIVE, SUITE 200, HIGHLANDS RANCH CO 80129
Michael A Ernst officer: Chief Financial Officer 5914 NORWAY RD, DALLAS TX 75230
Thomas F August officer: Chief Operating Officer 6214 PARK LANE, DALLAS TX 75225
Reihsen Gerald J Iii officer: Executive VP - Corporate, other: Develop. & Legal and Secretary 14185 DALLAS PARKWAY, SUITE 1100, DALLAS TX 75254

Tier REIT (Tier REIT) Headlines

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